LEARN UPDATE
LATEST ETHICS, AUDIT AND REPORTING NEWS UPDATE
MARCH 2016
Welcome to the second edition of CPA Australia’s publication, the Latest Ethics, Audit and Reporting
News Update, or LEARN Update.
This publication provides a snapshot of changes to reporting, auditing and ethical standards applicable
now or available for early adoption and other developments within the accounting profession.
The objective of the update is to inform readers about new publications relevant to the period, that
have not been included in previous LEARN Updates.
We hope you find the LEARN Update to be a valuable tool.
REPORTING
CPA Australia has published a revised version of the Guide to Valuation and Depreciation for Public
and Not-for-profit Sectors under AASB Accounting Standards. The revised guide has been developed
to provide a high-level, non-technical understanding of the subject matter, and more detailed guidance
for those from a technical background including accountants, valuers and engineers.
Apply now:
 No new reporting standards
Available for early adoption:
 AASB 16 Leases (PDF) commencing 1 January 2019
 AASB 2016-1 (PDF) commencing 1 January 2017
AUDIT AND ASSURANCE
Apply now:
Periods commencing on or after 1 July 2015:
 APRA approved form audit report for audits of registrable superannuation entities under SPS 310
Audit and Related Matters
Engagements commencing 1 January 2016:
 ASAE 3150 Assurance Engagements on Controls (PDF) – This standard is suitable for use by
auditors providing assurance on controls including controls at a service organisation which does
not fit within the parameters of ASAE 3402 Assurance Reports on Controls at a Service
Organisation, which applies only to service organization controls likely to be relevant to user
entities’ internal control as it relates to financial reporting.
Available for early adoption:
The following standards apply to financial reporting periods ending on or after 15 December 2016, but
are available for early adoption. These enhanced auditor reporting changes conform to those issued
by the International Auditing and Assurance Standards Board (IAASB).
New Standards:
 ASA 701 Communicating Key Audit Matters in the Independent Auditor’s Report
Revised Standards:
 ASA 700 Forming an Opinion and Reporting on a Financial Report
 ASA 705 Modifications to the Opinion in the Independent Auditor's Report
 ASA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent
Auditor's Report
 ASA 570 Going Concern
 ASA 260 Communication With Those Charged With Governance
 ASA 720 The Auditor's Responsibilities Relating to Other Information
Amending standard:
 ASA 2015-1 Amendments to Australian Auditing Standards
New & Revised Guidance applicable now:
 No new guidance statements
Audit Resources:
Resources to support implementation of the new auditor reporting requirements are:
 Podcast: Enhanced auditor reporting: Are you prepared? CPA Australia discusses enhanced
auditor reporting requirements with the IAASB and AUASB.
 Live Chat: Enhanced auditor reporting Transcript of a Q&A session with the AUASB in which
participants’ questions about the impact on auditors of the new enhanced auditor reporting
requirements were answered by AUASB experts.
 IAASB webpage The New Auditor’s Report
PROFESSIONAL AND ETHICAL
STANDARDS
Apply now:
The following Accounting Professional & Ethical Standards (APES) have been revised and are
effective from 1 January 2016.
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APES 205 Conformity with Accounting Standards (PDF)
APES 210 Conformity with Auditing and Assurance Standards (PDF)
APES 220 Taxation Services (PDF)
APES 305 Terms of Engagement (PDF)
APES 325 Risk Management for Firms (PDF)
APES 345 Reporting on Prospective Financial Information prepared in connection with a Public
Document (PDF)
Available for early adoption:
The following APES have been revised and are effective from 1 April 2016. Early adoption is
permitted.
 APES 215 Forensic Accounting Services (PDF)
 APES 225 Valuation Services (PDF)
 APES 320 Quality Control for Firms (PDF)
REGULATORY UPDATE
Australian Charities and Not-for-profits Commission
The Federal Government has announced their decision to retain the ACNC, providing certainty to the
charity sector.
The ACNC has warned that thousands of charities are at risk of revocation of their registration for not
completing and lodging their 2015 Annual Information Statements.
CPA Australia has published a simple Guide for Not-for-profits to help charities better understand their
key reporting and assurance obligations.
SUBMISSIONS
Submissions made by CPA Australia:
 Reporting
 Audit and Assurance
 Professional and Ethical Standards
Submissions open for comment:
 Reporting
 Audit and Assurance
 Professional and Ethical Standards
Copyright 2016 CPA Australia Ltd. The Latest Ethics, Audit and Reporting News Update (LEARN Update) is copyright of CPA
Australia Ltd. Please address publications and copyright matters to: CPA Australia, Content & Publishing, 28 Freshwater Place,
Southbank, Victoria, Australia 3006. Telephone: +613 9606 9606 Fax: +613 9682 0567 Email: [email protected]
Internet: http//www.cpaaustralia.com.au
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